Cairns real estate: Buyers score Mission Beach bargains in Mayfair fire sale
Twenty Far North properties have been put on the market with owner Mayfair 101 in receivership - and some lucky buyers have snapped up homes for less than their original price.
BUYERS have scored bargains with a stack of Mission Beach properties offered in a fire sale with companies associated with James Mawhinney’s Mayfair 101 in receivership predominantly selling for less than what Mr Mawhinney paid in 2019.
All but one of the first tranche of properties – six homes and eight vacant lots - released last November sold within eight weeks, fetching a total of $4,515,500.
A beachfront four-bedroom home at 16 Reid Road, Wongaling Beach sold for $850,000 - $100,000 less than Mainland Property paid.
A beachfront home at 23 Mitchell Street, South Mission Beach was bought by Mainland for $875,000 and sold last December for $701,500.
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A property at 19 Donkin Lane, Mission Beach also sold for less than the price Mainland paid.
Mainland bought 2 Conch Street, Mission Beach for $710,000 – it sold in January this year for $610,000.
Both properties were sold by Tropical Homes Real Estate.
The second tranche of six homes and eight lots released in mid-April has been slower to move on the market.
The sale of Dunk Island was confirmed last week.
The freehold parcel on Dunk Island was sold with the Bond family as mortgagee in possession, with Upsense Media Capital’s managing partner Mark Spillane confirming he’d bought it for less than the $31.5m that Mayfair 101 agreed upon but failed to pay.
The Australian Securities and Investments Commission (ASIC) says about $211m is owed to Mayfair 101 investors and in mid-April, the Federal Court slapped a ban on Mawhinney offering financial products for two decades.
Receivers McGrathNicol retained Ray White Mission Beach and Tropical Property to market the property portfolio.
Ray White Mission Beach principal Dick Williams said the releases had sparked buyer interest in the region.
“It’s been very, very positive, there’s one or two we are still negotiating on,” Mr Williams said.
“The market is very strong – I’m not saying prices are going through the roof but, it’s a very active market.”
A beachfront property at 36 Pacific Parade, Mission Beach, bought by Mainland in 2019 for $1.3m, is yet to find a new owner, along with an allotment at 8 Reid Road, Wongaling Beach, for which Mainland paid $830,000.
McGrath Nichol was appointed receivers of Mainland Property Group on August 19, 2020, encompassing the companies’ Mainland Property Holdings, Mainland Property Holdings 2, Mainland Property Holdings 3, Mainland Property Holdings 8, and Jarrah Lodge Holdings.
Meanwhile, two tourism properties offered by national agency Resort Brokers on receiver’s instructions have evidently been snapped up.
Wongaling Backpackers, bought by Mainland in September 2019 for $800,000, has been sold for an undisclosed sum.
The .36ha property at 28 Wongaling Beach Road previously operated as Absolute Backpackers Mission Beach and has three buildings including a 15 room dormitory that can house about 50, and a swimming pool.
And Bali Hai Beachfront Caravan Park at Wongaling Beach is under offer.
It was for sale by expressions of interest.
It is set on 11.22ha land with prime beach frontage and views to nearby Dunk Island, with only about 2ha of the property used to date for 33 powered sites and extensive cleared areas for unpowered accommodation, with various onsite amenities including a 40 seat restaurant.
In January the Federal Court ordered the winding up of M101 Nominees Pty Ltd, which issued secured debentures promoted by Mayfair 101.
ASIC had issued court actions against Mayfair 101 Group companies and their director James Mawhinney.
In March, the Federal Court found companies in the Mayfair 101 Group made statements that were false, misleading or deceptive.
In April, the Federal Court restrained Mayfair 101 director James Mawhinney from promoting and raising funds through financial products for 20 years.
ASIC said in a statement about $211 million was owing to Mayfair 101 Group investors.
Federal Court Justice Anderson found Mr Mawhinney’s conduct could be characterised as “serious, incompetent and reckless and displaying a propensity for conduct in disregard of the requirements of financial services laws”.
He found there was a high likelihood that Mr Mawhinney, or entities controlled by him, wouldl engage in similar conduct if not prevented by the Court from doing so.
“Mr Mawhinney’s conduct can accurately be described as reprehensible conduct which demonstrates a complete disregard for financial services laws and, as a consequence, places the public at great risk of financial loss should Mr Mawhinney not be restrained by the form of injunction sought by ASIC,” Justice Anderson said.
He found Mr Mawhinney engaged in conduct that entailed “inherently problematic, risky and fatally flawed” investment schemes and had expressed no contrition or remorse for the very significant loss of investors’ funds.
McGrathNicol was appointed receivers of Mainland Property Group on August 19 last year.
Investment group Naplend moved to appoint McGrath Nicol as a receiver to recover loans related to 107 Mission Beach properties, saying in a statement its decision followed the appointment of provisional liquidators to Mayfair entities.
ASIC appointed provisional liquidators to a company within the Mayfair 101 group – M101 Nominees.
“We have worked tirelessly and always in good faith with Mayfair to find a solution, and despite granting multiple extensions based on assurances of securing re-financing,” a statement from Naplend said at the time.
“Mayfair have been unable to meet their obligations. In the circumstances, and based on professional advice we have received, unfortunately we’ve been left with no choice but to appoint receivers.”
Originally published as Cairns real estate: Buyers score Mission Beach bargains in Mayfair fire sale
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